Well, I have a Kodak DX7630 (6MP) and a Kodak Z981 (14MP, 26x Zoom) and I do ok with them in situations that:

1. have less than ideal lighting since I've taught myself to make use of it's conveniently available PASM modes AND if need be, I can always use it's built-in flash.

2. when I want to freeze the action.

My wife (the very definition of a casual snapshooter) keeps complaining about blurry or overexposed/underexposed pictures when she takes them because, well, she just refuses to use the PASM modes and always relies on auto (known as "Smart" mode for Kodaks). If she bothered with the Scene mode, she would have better success but she finds the number of options too confusing. My point is, by learning how to use PASM, you are able to get the best out of your P&S. Is the J1 a possible solution to her problem? Possibly, BUT if she can't deal with a PASM dial on a simple P&S how can I expect her to wrap her head around the concept of changing lenses? On top of that, at $649.95CAD it competes with the Olympus E-PM1 at $499.99CAD that has a bigger sensor and the same fast AF as the E-P3, and the Sony Nex-3 at $499.99CAD (APS-C sensor).

As for me, it is the V1 that interests me due to the EVF BUT at $899.95CAD, it competes against the Panasonic G3 at $799.99CAD and the Samsung NX11 at $599.99. Both of which offer bigger sensors, better high-ISO capability, better DR, and convenient to locate manual controls.

I just can't justify the price difference between these Nikon 1s vs. what is out there. So for my wife, the typical soccer mom, the J1 is just too expensive for what it offers. For me, someone looking for better IQ over a P&S, the V1 also fails. So who is Nikon's real target market? If the J1 was under $400CAD and the V1 priced under $500CAD, then I'd give them a second look.